Berezovsky v. Bank of America, No. 16-15066 (9th Cir. 2017)Annotate this Case
The Ninth Circuit affirmed summary judgment for Freddie Mac in a quiet title action brought by a plaintiff who purchased real property in a homeowners association foreclosure sale. Plaintiff argued that the Nevada superpriority lien provision empowered the association to sell the home to him free of any other liens or interests, priority status aside. The panel held that the district court did not err in concluding that the Federal Foreclosure Bar superseded the Nevada superpriority lien provision. Although the recorded deed of trust here omitted Freddie Mac's name, Freddie Mac's property interest was valid and enforceable under Nevada law. The panel explained that, because Freddie Mac possessed an enforceable property interest and was under the agency's conservatorship at the time of the homeowners association foreclosure sale, the Federal Foreclosure Bar served to protect the deed of trust from extinguishment. Freddie Mac continued to own the deed of trust and the note after the sale to plaintiff.